Summary: The World Travel & Tourism Council (WTTC) warns that new UK visitor levies, if delegated to local mayoral authorities, could damage competitiveness, divert billions in spending to other markets, and threaten around 4.5 million jobs supported by the sector.

The World Travel & Tourism Council (WTTC) has cautioned that UK visitor levies under consideration could harm the sector's recovery and make the country less competitive. WTTC says that passing the power to impose taxes to Mayoral Strategic Authorities risks fragmenting policy and making travel to the UK less predictable for visitors.

Who would be hit hardest

WTTC highlights that the brunt of any new visitor taxes would fall on small and medium-sized enterprises (SMEs) such as restaurants, hotels and gift shops. Many of these businesses operate in rural and regional areas and depend on visitor footfall to survive; the report warns that some could close without that income.

Slower growth compared with global forecasts

The UK’s tourism performance is lagging. WTTC data cited in the report forecast UK tourism GDP growth of 4.3% in 2025, compared with a projected 6.7% rise for global travel and tourism. The analysis points to high business costs that hit SMEs harder and contribute to the sector’s underperformance.

  • Jobs supported: About 4.5 million roles, roughly 12% of UK employment
  • Projected UK tourism GDP growth (2025): 4.3%
  • Projected global tourism GDP growth (2025): 6.7%

WTTC warns that a piecemeal approach to levies would increase complexity for visitors and investors. Different charging regimes in different cities could discourage investment and reduce the UK’s appeal for both business and leisure travel.

UK city centre tourism scene illustrating potential impacts of visitor levies on local businesses
Local shops, hotels and restaurants could feel the immediate impact if visitor levies reduce tourist spending

Price sensitivity and competition from Europe

The WTTC report says travellers are increasingly sensitive to price and to perceived value for money. Alongside sustainability concerns, the affordability and predictability of costs are major decision factors. The council cautions that added levies could push visitors to lower-cost, more predictable markets such as Spain, France and Greece.

  • Travellers prioritise eco-friendliness and value for money
  • Higher local taxes may redirect billions in potential spending abroad
  • Competitors cited: Spain, France, Greece

WTTC’s alternative recommendations

Rather than new visitor levies, the WTTC urges policies that boost the UK’s global competitiveness: fewer costs for end users, a clear and predictable national tourism strategy, and local reinvestment of any tourism revenues to improve infrastructure and services.

The report argues these steps would help the UK capture a larger share of the growing global travel market and protect the small businesses that rely on tourism.

Conclusion — why this matters

If implemented without a coherent national plan, visitor levies risk reducing tourist numbers, harming regional economies and costing jobs. For travellers and the tourism industry, the key takeaway is that higher and fragmented local charges could mean higher trip costs, less predictable pricing and fewer services in affected communities.

So what? For travellers this could translate into higher prices and reduced choices. For the industry, inconsistent local taxes may deter investment and threaten the 4.5 million jobs the sector supports.